Embracing generative AI requires embracing natural gas and nuclear Image By Dan Romito Generative artificial intelligence represents the next actual global economic arms race. These technologies are poised to reshape industries, unlock innovation, and transform how we live, work, and compete for global resources. What many fail to realize, particularly in the U.S., is the substantial incremental demand for power this next opportunity will command. To succeed globally, our country must embrace the merits, capabilities and value of natural gas and nuclear energy. Power already accounts for approximately 40% of global greenhouse gas emissions. As generative AI adoption accelerates, the electricity demand is expected to grow exponentially. The electricity required to power generative AI is estimated to need an additional 15-25 terawatt-hours (TWh) annually. For context, a single TWh can power nearly 100,000 U.S. households annually. Virginia’s way Meeting this demand pragmatically and cost-effectively will necessitate reevaluating our country’s energy infrastructure and strategy. Fortunately, we already have a working blueprint: Virginia provides a compelling case study for addressing these energy demands. Approximately 70% of the world’s daily internet traffic passes through the state, making it a critical hub for data centers and digital infrastructure. Virginia’s energy mix – 60% natural gas, 30% nuclear, and 10% renewables – has proven reliable and affordable. The state’s energy costs are 30% lower than the national average, showcasing how a balanced energy strategy can deliver both affordability and sustainability. California’s counter In comparison, with its existing energy-related mandates, California reflects an average residential electricity cost over 90% higher than the national average. California’s electricity generation energy mix is less balanced: about 40 percent natural gas, 50 percent renewables and 10 percent nuclear. The U.S. national energy mix relies on 40% natural gas, 20% nuclear, and 20% renewables, highlighting Virginia’s greater reliance on nuclear and natural gas to meet its energy needs efficiently. Lowering carbon emissions Natural gas has been a cornerstone of decarbonizing Western economies for the past forty years. In 1990, natural gas accounted for around 15,000 TWh of power globally. By 2022, this figure had grown to approximately 40,000 TWh, underscoring its role in meeting growing energy demands while reducing emissions. During this same period, the United States achieved remarkable progress: GDP per capita increased by approximately 50%, while carbon dioxide emissions per capita decreased by about 30%. This decoupling of economic growth from emissions demonstrates how natural gas has facilitated a transition to a lower-carbon economy. Nuclear energy is another critical component of the solution. It provides a stable and emissions-free power source, making it an ideal partner for the fluctuating, and frankly unreliable, output of renewable energy sources like wind and solar. Virginia is also paving the way for fusion to be implemented into the energy mix. Natural gas and nuclear energy offer a pathway to meet the growing electricity demands of generative AI while minimizing the environmental impact, and they facilitate complete U.S. autonomy over our energy mix and supply chain. Moving forward As we embrace the transformative potential of generative AI, we must also embrace the energy sources that will enable its growth. Natural gas and nuclear energy are bridges to a sustainable future and the foundation for a flourishing next-generation economy. By leveraging these resources, we can power the next wave of innovation while ensuring that economic progress, geopolitical stability, and environmental stewardship go hand in hand. Dan Romito is managing director overseeing the Consulting & Advocacy practice at Pickering Energy Partners. He previously worked at Nasdaq, and his writing has been published in Harvard Business Review, Bloomberg and CNBC. *The opinions expressed in this column are those of the author and do not necessarily reflect the views of EnergyPlatform.News.
